Telecommunication: One of the leading growth sectors in Indian economy

Tele-density in India has got enhanced drastically over the recent years and has reached around 54% in the fiscal year 2009-10, owing to improving network infrastructure. The launch of advanced telecom services like 3G and IPTV will also drive the growth in Indian telecom subscriber base over the forecast period. Increasing consumers’ interest and aggressive promotional strategies adopted by companies are likely to drive the mobile value-added services in India, says RNCOS.

Indian telecom sector growth is fully supported by young Indians, music and gaming are going to be with value-added services estimated to reach over Rs 16500 Crore by 2010, says the recent analytical study “Indian Telecom Analysis (2008-2012)” by RNCOS. Anticipating high growth potential in various segments of the telecom sector, extensive research on the industry has been done. It has been found that the pressure on profits and revenues has forced operators to look at other avenues using the same platform. Considering this fact, companies are adopting various promotional policies by offering several schemes in order to attract customers.

Future Secenario of Telecommunication:

Reliance Industries is likely to invest $5 billion (approximately Rs 23,375 crore) in about two years from now, as it completes its telecom rollout for broadband access across India. Tata DOCOMO won the Telecom Asia Award for the Best Emerging Markets Carrier, a category that honours the best-performed fixed or wireless carriers. The most important factor that contributed to making Tata Docomo such a huge success is its single-minded focus on core values of honesty, transparency and consumer relevant innovations.

The smart phone market continues to see impressive growth around the world and in the Asia Pacific (APAC) region particularly. Shipments in the region are expected to grow 53% year-on-year in 2010 to reach 76.7 million units and are projected to easily surpass 100 million units in 2011.Furthermore, Canalys forecasts that APAC will overtake Europe, the Middle East and Africa (EMEA) in 2012 to become the largest regional smart phone market, accounting for 36% of global shipments. Few days back there was an article quoting a survey that said India will have more than 100% Teledensity by 2013 – means, more mobile connections than number of people living in India. This puts the number of mobile connections close to 1.1 billion users. With that kind of growth India is slated to be the largest Telecom Market in the world surpassing China.

In the list of winners in India’s auction for broadband wireless spectrum, one stands out: Qualcomm Inc. of San Diego. The chipset maker won one spectrum in the 2.3 gigahertz band encompassing Delhi, Mumbai, Haryana and Kerala — four areas where India’s infrastructure development and telecom and Internet usage are high. For that, it paid $1.05 billion. That might seem like a lot in a telecommunications market that is definitely fast-growing.

From the survey it is found that post and telecommunications firms recorded the fastest rise among the six sub-sectors reviewed by economic times. ”India’s economy continues to expand at a brisk pace. As a result, employment growth remains robust, helping to sustain consumer spending in the coming months,” said Frederic Neumann, co-head of Asian Economics Research at HSBC. MIT School of Telecom management is providing a unique techno-management programme which helps in sharpening the skills in Telecom which in turn increases the future prospects.

Dimple Kumari.A
Research Associate